Perhaps the great credit score you earned and enjoyed in the past is now a little tarnished, and could use a little… freshening up. This could be due to some less-than-perfect choices on your part, or just some tough life circumstances. Or, you may be just starting out and are building your credit score for the first time. Whatever the reason your credit score needs some help, you can rely on Radiant Credit Union to help you get your credit score back on track and heading in the right direction.
Here are five ways Radiant can help:
Credit Builder Loans
Essentially, we grant you a small loan at a relatively low interest rate, and place the borrowed amount on deposit in an interest-bearing account at the credit union. You make monthly payments until the loan is paid in full. Once the loan is repaid in full, you have access to all the money in the special savings account.
There are really two main benefits which arise from a credit builder loan. First, Radiant reports the loan and your payment performance to the credit bureaus just like it was any other loan – as long as you make your scheduled payments on time, every time, your positive history of making payments as agreed will extend with every payment you make. The longer you make your payments on time, and don’t have any payment hiccups elsewhere, the more your credit score will tend to rise.
Second, once the loan is paid off, the amount you “borrowed” initially, plus the interest it earned is now yours free and clear, with no holds. Think of the Credit Builder Loan not only as a way to build credit, but as a way to build a savings account balance as well.
Credit Builder Loans are a great way to get started building or rebuilding your credit. Learn more about Radiant Credit Union’s Credit Builder Loan by calling your branch today.
Secured Credit Card
Consider setting aside a few hundred dollars to secure a credit card in your name. You’ll have the convenience of shopping with a reputable card brand, while we hold the funds in a savings account as security against your purchases. As you pay off your card balance, or make monthly payments by the due date each month, your credit score goes up! It’s really just that simple and easy.
Compare the low interest rate and no annual fee associated with a Radiant Secured Credit Card to the offerings of most banks, and you’ll quickly see our secured card is not only a credit builder, but a money saver as well. It’ll be easy to see why it makes sense to build your credit with a Radiant Credit Union Secured Credit Card.
In-person credit counseling
Give us an opportunity to work with your credit report and budget to help you find ways to pay down and eliminate debt or unnecessary expenses. At Radiant Credit Union, our Member Service Representatives are ready to help you get your credit in order. Sometimes, it takes a fresh perspective to see your own situation clearly; we’ve already helped countless members do just that. This is especially true if you feel weighed down by debt and monthly payments. Give our Member Service Representatives a chance to show you how to pare down your debt and build up your credit score. It’s one of your many free benefits as a Radiant Credit Union member!
Rent payment reporting
If possible, make sure your rent payments are tracked and reported to Experian RentBureau, the only major credit reporting agency to include on-time rental payment data on its reports. Use of timely rent payments to build and boost credit scores is relatively new, and many people don’t know about it yet.
If you’re already leasing a home, or looking to find a suitable property to lease, ask your management company if your payments are reported to Experian RentBureau. And if you pay rent to an individual rather than a management company, you can still take advantage of a service that collects your rent payments electronically, pays your landlord and reports to Experian. It may be possible to include your excellent rent payment history, too.
To use your timely rent payment history for building or rebuilding your credit, you’ll need to be proactive. There are a handful of services that will collect, disburse and report for you, but of course, you’ll pay a small fee for the service each month. You must contact them to pay the small fee, but it can be a valuable investment in building your credit score.
Planning for a good credit rating is just as important as planning for major purchases and life transitions. The importance of a good credit rating means it can’t be an afterthought and it shouldn’t be left to chance.
Give us a call at 352-381-5200 or 877-786-7828, to take a look at your credit score and to talk about options for improving it.